- The ECJ ruled that VAT adjustment rights under Article 90 of the EU VAT Directive remain with the original taxable person who supplied the goods or services and declared the VAT; these rights do not transfer to a third party through assignment of a debt claim.
- The case involved a Romanian subcontractor (Mokoryte) attempting to recover VAT after acquiring a contractor’s debt claim against an insolvent developer, but the tax authority denied the adjustment.
- The ruling clarifies that VAT rights and civil law debt rights are separate: assignment of a receivable does not transfer the VAT position attached to the original transaction.
- This decision is significant for businesses involved in claim assignments, factoring, or insolvency restructuring, as it limits VAT recovery to the original supplier.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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